A blog for the promotion of social, environmental and economic justice

Sunday, 9 October 2011

There is a solution for the 99%

Growing economic inequality in the USA, and throughout the West, is something that I have commented on before in this blog, and it is well documented. The incomes of middle class Americans have been stagnant or falling since the 1970's whilst those of the capitalist class have been growing. According to Rupert Cornwell in today's Independent:

"Income disparities are wider than at any time since the Wall Street crash of 1929, and almost 50 per cent of financial wealth in the US is now in the hands of 1 per cent of the population."

The American middle classes are really suffering the impact of 30 years of neoliberalism, and the effects of the financial crash, which began with the sub-prime mortgage scandal. Its important to make a distinction because 'middle class' means something different in the USA and the UK. In the UK, the middle classes are well-off professionals such as doctors and lawyers, whereas in the USA the term 'middle class' includes working families that would be described as 'working class' in the UK. Middle class Americans are crucial to the USA because they are at the heart of America.

Because the USA has always had privatised healthcare and higher education and a weak welfare system, the American middle classes have always lead a potentially precarious existence. If you get ill, you get large health bills, if you can't work because of your illness you can lose your job and your house. In a short space of time you could go from a fairly comfortable lifestyle to being out on the street. In the past the US economy has been strong enough to ensure that this didn't happen to most Americans. That is no longer the case. Millions of Americans are now finding themselves in a situation where they are living hand to mouth, knowing that if they lose their job they will lose everything they had. They are living in fear of joining the millions of families who have already suffered this fate.

We are the 99% is a website which documents the fears and suffering of middle class Americans. Many of these people are hanging on just one paycheck away from disaster and shouldering thousands of dollars of debt.

This photo is typical of the plight of people on We are the 99%

We are the 99%, like occupywallst, which I have been following from its start in mid September, is a reaction against the bailout of Wall Street, and growing poverty, unemployment and economic inequality. The Tea Party was also a reaction to the bailout which came largely from the middle class right and which was rapidly absorbed, manipulated and funded by the capitalist class as I reported here:

"That is what the Tea Party is all about. Millions of Americans are angry, bewildered and frustrated at the recent crash and the fact they aren't getting richer anymore. But there is a huge problem here - they are directing their anger against the wrong enemy. The people who caused the crash - the financial capitalists and corporations of Wall Street aren't being blamed. Instead, the anger is being directed at the government."

Unlike the Tea Party, the occupywallst movement is really about social justice. It is a recognition that the growing inequality has to be reversed, and that the neoliberalist policies pursued by successive governments have failed the American people. As yet the movement appears to be leaderless and doesn't have a coherent programme and specific demands for change. But it is growing and spreading to other cities in the USA. It is beginning to cause concern to politicians like Obama, who have begun to take notice.

What should the demands of the occupywallst movement be? Well, it's not for me to say, but if you read about the problems of the 99% the solutions are fairly obvious. What Americans need is freedom from fear through access to jobs and public provision - in health, education and social security. These are things that we have in the UK, but we are in the process of losing, due to the Coalitions government's austerity programme, if we don't fight for them. Like us, Americans need a Green New Deal to provide jobs and tackle climate change, they need a properly funded system of public healthcare and higher education. What they need is social security as a right, not welfare as a handout.

One of the greatest of Americans tried to ensure that Americans had all these things but was unable to complete his project before he died. His name was Franklin D. Roosevelt and he enshrined the freedom from fear in his economic second Bill of Rights. His bill of rights is what the American middle classes need. The occupywallst movement don't need to invent a programme because they already have a ready made one, now they have re-discover it and fight for it.

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About Me

I believe in social justice, the importance of living in harmony with the environment and the economics of need - not greed.
We can have thriving businesses without damaging the environment and without exploitation of working people. I believe that public services are best delivered by the public sector without the profit motive.
Views expressed here are my own.